Which of the following statements is correct when inventory unit costs are decreasing?
A)Inventory turnover will be the greatest when the average cost inventory method is used.
B)FIFO's gross profit will be the highest among the inventory costing methods.
C)Inventory turnover will be the largest when the LIFO inventory method is used.
D)Use of the LIFO method will result in lower cash flows due to a decreased cost of goods sold.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct when inventory unit costs are decreasing?
A)Inventory turnover will be the greatest when the average cost inventory method is used.
B)FIFO's gross profit will be the highest among the inventory costing methods.
C)Inventory turnover will be the largest when the LIFO inventory method is used.
D)Use of the LIFO method will result in lower cash flows due to a decreased cost of goods sold.

Which of the Following Statements Is Correct When Inventory Unit